East of Suez Fuel Availability Outlook 25 Aug

VLSFO availability tight in Singapore

Typhoon- induced bad weather keeps bunkering halted in Zhoushan’s outer anchorages

Bunker demand picks up across South Korean ports

IMAGE: Tugboat helps to turn around a large container ship on its way out of the Port of Busan, South Korea. Getty Images


Singapore and Malaysia

Singapore’s VLSFO availability remains tight, with lead times varying significantly among suppliers. Some recommend around seven days, while others advise much longer lead times of up to 19 days. This compares with last week's lead times of 7-13 days. A source attributed the tightening availability to reduced supply among suppliers and shortages of blending components.

HSFO lead times are currently at 6-12 days, broadly unchanged from 6-13 days last week. LSMGO availability, meanwhile, has tightened, with lead times increasing to 4-9 days from 2-8 days a week earlier.

Singapore’s residual fuel oil stocks have averaged 3% lower so far this month compared with July. Fuel oil inventories at the port have fallen below 19 million bbls so far in August, while middle distillate stocks have averaged 5% lower so far this month, Enterprise Singapore’s latest data shows.

In Malaysia’s Port Klang, bunker supply also remains constrained. Prompt VLSFO availability is tight, LSMGO supply remains limited and HSFO continues to face pressure.

East Asia

VLSFO availability in Zhoushan remains constrained despite subdued bunker demand, with suppliers now recommending lead times of around 10 days, compared with 7-10 days a week earlier. Lead times for LSMGO and HSFO have also extended to around 10 days, from 7-10 days previously.

The tightness is largely a lingering impact of the two-week suspension of bunkering operations in Zhoushan following Typhoon Dolphin, which created significant backlogs. The situation could persist, as bunkering at the port’s outer anchorages, Tiaozhoumen and Xiazhimen, has been suspended again since the weekend amid rough weather triggered by three successive cyclones, a source said.

China’s meteorological authorities on Tuesday raised the typhoon alert from yellow to orange, the second-highest level in the country’s four-tier warning system, as two typhoons are forecast to make landfall in the coming days. Typhoon Narra is expected to hit China between late Tuesday night and Wednesday, while Typhoon Saudel could make landfall between late Thursday night and Friday morning, according to the National Meteorological Center (NMC).

There is currently no clear timeline for the resumption of operations at the affected anchorages, the source added.

Bunker supply conditions remain mixed across northern China. Dalian and Qingdao have adequate VLSFO and LSMGO availability, although HSFO remains tight in Qingdao. Tianjin is facing constraints across all three major fuel grades, while Shanghai continues to have limited VLSFO and HSFO supply. LSMGO availability in Shanghai remains relatively stable.

Supply is also tight in southern China. Fuzhou continues to face shortages of VLSFO and LSMGO, while Xiamen has sufficient VLSFO but limited prompt LSMGO availability. Both VLSFO and LSMGO remain constrained in Yangpu and Guangzhou.

Hong Kong’s bunker market is largely unchanged, with suppliers continuing to advise lead times of around seven days for all major fuel grades.

In Taiwan, VLSFO and LSMGO can currently be supplied in around three days at Hualien and Keelung, slightly longer than the roughly two days required last week. Kaohsiung's lead times have also increased to 3-4 days from around two days previously.

Local authorities in Kaohsiung and Hualien declared 24 August a day off because of adverse weather linked to the typhoons. Weather conditions have since improved, however, and bunkering operations have returned to normal, according to a Taiwan-based source.

Bunker demand has strengthened across South Korean ports as poor weather and operational disruptions in Chinese ports, particularly Zhoushan, have diverted buyers towards South Korea, a South Korean trader said.

Lead times at southern ports including Busan, Ulsan, Masan, Onsan, Yeosu and Kwangyang have widened to 4-11 days from 4-6 days a week ago.

The same trend is evident at western ports such as Incheon, Daesan, Dangjin, Pyeongtaek and Taean. Lead times for VLSFO, LSMGO and HSFO now stand at 4-11 days, compared with around five days previously.

Weather-related disruptions are expected to affect bunkering operations at Daesan, Ulsan and Yeosu on 26-28 August and again on 1-3 September. Daesan is also expected to face weather-related disruptions on 1-3 September.

Supply conditions in Japan remain severely constrained heading into September. All major refineries are currently restricting ex-wharf cargo releases after unusually competitive pricing last month triggered a sharp surge in demand and depleted nationwide availability, a Japan-based trader said.

Refineries and suppliers are now negotiating September wholesale prices and allocated volumes. The situation is particularly critical in western Japan, where both cargo and barge availability are severely limited.

Given the tight supply environment, responses to indications and availability enquiries are currently strictly indicative and remain subject to further confirmation, the source added.

Limited VLSFO, LSMGO and HSFO availability is being reported across major bunkering hubs including Tokyo, Chiba, Kawasaki, Nagoya, Yokkaichi, Osaka, Kobe, Mizushima, Tokuyama and Oita. Kashima is also experiencing constrained VLSFO and HSFO supply.

In Tokyo, Chiba and Kawasaki, the earliest delivery windows for VLSFO and HSFO are currently around eight days.

Oceania

VLSFO availability remains stable across Western Australia, with suppliers in Kwinana and Fremantle recommending lead times of around seven days. Both ports depend on a single supplier, while all bunker deliveries are carried out by barge.

Supply conditions are more mixed along Australia’s east coast. In Port Kembla, VLSFO can be delivered by either truck or pipeline, while Sydney has sufficient stocks of both VLSFO and LSMGO. HSFO availability in Sydney is comparatively tighter, with suppliers generally advising lead times of around seven days.

In Queensland, VLSFO and LSMGO remain readily available in Brisbane and Gladstone, with delivery windows holding at approximately one week.

Further south, VLSFO inventories in Melbourne and Geelong remain comfortable. However, both ports rely on a single bunker barge, keeping recommended lead times at around seven days. HSFO availability has tightened further in both Melbourne and Brisbane.

Separately, one supplier is offering all three major bunker grades in Brisbane, Sydney and Melbourne, with lead times of roughly five days.

In Western Australia, pipeline-based bunker deliveries at Dampier Cargo Wharf (DCW) remain suspended until around the end of September as repair work continues. Limited truck deliveries are still available, subject to vessel size. During the disruption, the supplier has designated the Toll Supply Base (TSB) in Dampier as the preferred location for bunker operations, according to a source.

Across the Tasman, bunker availability in New Zealand remains broadly unchanged. VLSFO is readily available in Tauranga and Auckland, where suppliers are recommending lead times of around four days. At Marsden Point, both VLSFO and LSMGO can be delivered directly to vessels through pipelines.

Weather remains the key operational risk in New Zealand, with bunker deliveries in Wellington and ports across the South Island particularly susceptible to delays during periods of adverse conditions.

South Asia

Adverse weather is expected to disrupt bunker operations at several Indian ports over the coming days. Sikka, Kandla and Visakhapatnam could experience operational interruptions between 27-29 August, while rough sea conditions are likely to hamper bunkering activities in Mumbai, Cochin and Visakhapatnam from 25-29 August.

In Sri Lanka, bunker availability remains good across all major fuel grades in Colombo and Trincomalee. However, intermittent weather-related disruptions are forecast at both ports between 25-29 August, increasing the risk of delays to bunker deliveries.

Middle East

Renewed tensions between the US and Iran around the Strait of Hormuz continue to constrain bunker fuel supply in Fujairah. Availability of VLSFO and LSMGO remains tight and broadly unchanged from last week, with only a limited number of suppliers able to offer LSMGO. HSFO supply is also restricted.

Supply conditions are more comfortable in nearby Khor Fakkan, where VLSFO and HSFO remain readily available. Despite the heightened regional tensions, bunker demand has picked up at both Fujairah and Khor Fakkan, according to a Middle East-based source.

In Saudi Arabia, VLSFO and LSMGO availability in Jeddah remains steady despite firmer demand. However, adverse weather could intermittently disrupt bunkering operations in Jeddah on 25 August and in Yanbu between 25-27 August.

Bunker supply remains constrained at Qatar’s Ras Laffan, where both VLSFO and LSMGO availability continues to be limited.

“Operations are currently ongoing across the Middle Eastern ports,” an Oman-based trader said.

Across Oman’s key bunkering hubs — Salalah, Muscat, Duqm and Sohar — LSMGO availability remains stable, with suppliers generally recommending lead times of 2-3 days, depending on the port and nomination. However, adverse weather forecast in Salalah between 25-29 August could temporarily disrupt bunker operations, according to a source.

Egyptian ports remain fully operational, although bunker inventories at Port Suez are critically low across all three conventional fuel grades.

Further south, availability of all major bunker fuel grades remains limited in Djibouti.

By Tuhin Roy

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